00:00I would characterize it slightly differently. He's not like Jensen, who really would always,
00:06you know, go big in terms of his numbers, and he will always talk trillions.
00:11Hoctan, on the other hand, is more, I would say, grounded in the sense like, yes, he would talk
00:18in terms of gigawatts, and you know, how he has got more customers now, but he won't make any
00:25bold bets around, you know, four trillion, five trillion, so we didn't hear those sort of numbers,
00:30but look, overall, I thought the print was solid. Whenever you see, you know, valuations really go
00:37up so much in anticipation of good earnings, you could say the buy side bogey was higher,
00:42and they didn't live up to the estimates, but to me, this is a company that's growing top line
00:47over 60%, and it's going to do that at least for the next two to three years. That's very solid.
00:54So is this a company that is setting the bar low, and is that the way that perhaps some of
01:00these
01:00hardware companies need to be going into earnings announcements, setting the bar low so that they
01:04can easily top it, and then kind of wow people at the end of the day? Yes, and also, everyone
01:10is
01:10trying to triangulate here. If Google is doing more business with Anthropic, and Anthropic's backlog
01:18is 200 billion, should Broadcom be getting a piece of that pie? Because that's definitely not going to
01:26NVIDIA, or if it's going to NVIDIA, then is it coming at the expense of Broadcom? And so, you know,
01:32that $200 billion number was so big coming from Anthropic that everyone was modeling, you know,
01:38Broadcom should be the obvious beneficiary because they make most of Google TPUs. That wasn't evident
01:45in the guidance last night where they said they have six XPU customers now, and, you know,
01:51they will do up to 10 gigawatts in 2027, and it's going to ramp up very nicely, but there wasn't
01:58that sort of lift, that $200 billion backlog converting to probably a bigger estimate than
02:04what they had guided to previously.
02:05Broadcom, did they make good chips?
02:09If it's a good chip maker, I'm binding on the pullback today.
02:13Look at the entire Google TPU ecosystem is all made by Broadcom chips. Like, Google doesn't
02:22make its own chips, so it does it in partnership with Broadcom. And now, Anthropic, which is the
02:29leading frontier model, that was all trained on Google TPUs. And Anthropic gave a $200 billion
02:37contract for Google TPUs that's going to go through 2030. So in theory, Broadcom should be a major
02:46beneficiary of that.
02:48So why is the stock selling off today?
02:50Well, they didn't erase their guidance. Everyone is saying, you already got, you told me this 90 days
02:57back. In the last 90 days, this Anthropic contract came into the scene. Why are you not lifting your
03:03guidance more? And it happens all the time.
03:06Okay. So that's the story with Broadcom, and it sounds like it is specific to Broadcom rather than
03:12applicable to the rest of the AI world because of that Anthropic announcement.
03:17Agreed, yeah.
03:17What about CrowdStrike? The shares are down about 6.7%. Modest sales guidance. Again, something that
03:23didn't live up to investor expectations.
03:25Yeah. Again, a case of valuations, front running, a lot of the good news. And they conceded, you know,
03:33clearly coding agents is the big driver when it comes to AI use. And for a company like CrowdStrike
03:41that does cybersecurity, they don't have as much exposure to coding agents being used more and more
03:48in terms of the data security or, you know, providing cybersecurity around coding agents.
03:53They said they are ramping up AI products, but then they were more focusing on general AI use
04:01case. Whereas right now, you know, 80% of incremental spend is going towards coding agent,
04:06and they didn't really call out that as being a driver of their revenue. So, you know, the market
04:11picks these little things where they would measure the bullishness of a company in terms of how much
04:19they're raising estimates, as well as what is it that market is fixated on right now? It's coding agents
04:26and entropic. Well, if you're not telling me that story, and that's not your key focus on the earnings
04:31call, then people may be disappointed when the valuation is so rich.
04:35you know that story, and that story is so rich. So, I'm going to say a few days later, you
04:35know,
04:35there's a way to go back to it, but there's a way to go back to it. But I mean,
04:35you know,
04:35okay, I mean, it's a way to go back to it. But then you're trying to keep us with it.
04:35So, I don't think that way.
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